A smart traveler always goes through the cancellation policy before booking tickets. So if you are planning to fly to Iceland soon, the following guide to Icelandair cancellation policy will be very helpful.

Icelandair Cancellation Policy in Case of Flight Delay

• Cancellation policy for Icelandair Ticket is slightly different from standard rules. You do not have to pay cancellation if the flight is delayed for more than 4 hours.

• If the airline does not complete the trip within the scheduled time, the airline will offer the following benefits to the passengers: -
  According to Icelandair cancellation policy, the airline will offer a full refund, accommodation, transport if necessary, food, call, etc. Free of charge.

• To receive benefits, passengers must communicate with the airline’s customer service team within 14 days of departure.
  The compensation value is determined after evaluating the route distance, ticket class and many more factors.

• Both refundable and non-refundable ticket holders are entitled to a full refund. Cancellation policy for Icelandair ticket will not be implemented if the flight is delayed for more than 5 hours. All passengers will receive compensation with free services.

• When the aircraft is delayed or interrupted due to climatic conditions, the airline may not offer compensation. In such cases, the airline will notify the passengers in advance. Passengers can track all the regular updates of their aircraft on the official website of Icelandair.

• To start the cancellation process, passengers have many options to choose from. But the recommended method will be the electronic cancellation process. Since the web portals do not charge a service fee

Icelandair Cancellation Policy

• There is no service charge for passengers when booking on the official Icelandair website.

• According to Icelandair’s cancellation policy, if a ticket is canceled within 24 hours, there is no cancellation fee for all refundable tickets.
  After the flight departs, the airline will confiscate the ticket fare and no refund will be given to the passengers.

• For non-refundable tickets, Icelandair’s cancellation policy is slightly different. Tickets must be canceled within 24 hours of booking. After a certain period of time, the airline will deduct the full amount as a cancellation fee.

• If the airline cancels the ticket, there is no cancellation fee for the passenger.

• Due to Icelandair’s cancellation policy, passengers with award tickets cannot cancel their trip. If he or she cancels, no refund will be assigned to them.

• Passengers can cancel their reservation up to 24 hours before departure.
  It will take 20 business days for the refund amount to be reflected in your passenger bank account after you cancel your ticket.

• If the airline awards a travel voucher, the voucher must be used within one year from the date of issue. The value of a travel ticket is the same as the total fare of the ticket.

Icelandair Cancellation Charges

• Ticket cancellation fees depend on the days of cancellation, time of cancellation, passenger routes and more.

• Iceland Air cancellation fee will be charged to passengers upon completion of the accident-free period. A passenger with an Economy Light ticket must pay 70% of the ticket price as cancellation fee.

• A passenger who pays $ 27 and purchases a protection plan does not have to pay a cancellation fee. They will get a refund from the airline in one to three weeks.

• A passenger with no plan will not receive a full refund after the end of the accident-free period. When non-refundable ticket holders cancel tickets after the 24-hour window closes, they must pay the Iceland Air cancellation fee in order to receive a refund.

Source: https://fixes7430.medium.com/icelandair-cancellation-policy-refund-charges-bc21ce62f139